VERTEX RESOURCE GROUP LTD (VTX.CA) Stock Fundamental Analysis
TSX-V:VTX - TSX Venture Exchange - CA92536G1046 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to VTX. VTX was compared to 24 industry peers in the Commercial Services & Supplies industry. VTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. VTX has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year VTX has reported negative net income.
In the past year VTX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VTX reported negative net income in multiple years.
In the past 5 years VTX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.82%, VTX is in line with its industry, outperforming 41.67% of the companies in the same industry.
VTX has a Return On Equity (-10.22%) which is in line with its industry peers.
The Return On Invested Capital of VTX (5.43%) is better than 66.67% of its industry peers.
VTX had an Average Return On Invested Capital over the past 3 years of 5.26%. This is below the industry average of 8.20%.
The 3 year average ROIC (5.26%) for VTX is below the current ROIC(5.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.82% | ||
| ROE | -10.22% | ||
| ROIC | 5.43% |
ROA(3y)-0.34%
ROA(5y)-0.78%
ROE(3y)-1.13%
ROE(5y)-2.38%
ROIC(3y)5.26%
ROIC(5y)4.33%
1.3 Margins
VTX has a Operating Margin (5.43%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VTX has grown nicely.
Looking at the Gross Margin, with a value of 26.22%, VTX is in line with its industry, outperforming 45.83% of the companies in the same industry.
VTX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.43% | ||
| PM (TTM) | N/A | ||
| GM | 26.22% |
OM growth 3Y43.75%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.83%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTX is destroying value.
Compared to 1 year ago, VTX has less shares outstanding
The number of shares outstanding for VTX has been increased compared to 5 years ago.
Compared to 1 year ago, VTX has a worse debt to assets ratio.
2.2 Solvency
VTX has an Altman-Z score of 1.13. This is a bad value and indicates that VTX is not financially healthy and even has some risk of bankruptcy.
VTX's Altman-Z score of 1.13 is in line compared to the rest of the industry. VTX outperforms 41.67% of its industry peers.
VTX has a debt to FCF ratio of 4.09. This is a neutral value as VTX would need 4.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.09, VTX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.71 is on the high side and indicates that VTX has dependencies on debt financing.
VTX has a Debt to Equity ratio of 1.71. This is comparable to the rest of the industry: VTX outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.83
WACC6.56%
2.3 Liquidity
VTX has a Current Ratio of 1.05. This is a normal value and indicates that VTX is financially healthy and should not expect problems in meeting its short term obligations.
VTX has a Current ratio (1.05) which is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that VTX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, VTX is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for VTX have decreased strongly by -350.00% in the last year.
The Revenue has decreased by -6.99% in the past year.
VTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.47% yearly.
EPS 1Y (TTM)-350%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-500%
Revenue 1Y (TTM)-6.99%
Revenue growth 3Y12.99%
Revenue growth 5Y6.47%
Sales Q2Q%-14.45%
3.2 Future
Based on estimates for the next years, VTX will show a very strong growth in Earnings Per Share. The EPS will grow by 91.00% on average per year.
Based on estimates for the next years, VTX will show a decrease in Revenue. The Revenue will decrease by -1.56% on average per year.
EPS Next Y203%
EPS Next 2Y91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.94%
Revenue Next 2Y-1.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VTX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 4.66, the valuation of VTX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTX indicates a rather cheap valuation: VTX is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VTX to the average of the S&P500 Index (21.65), we can say VTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTX indicates a rather cheap valuation: VTX is cheaper than 95.83% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than VTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.89 | ||
| EV/EBITDA | 3.63 |
4.3 Compensation for Growth
VTX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VTX's earnings are expected to grow with 91.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:VTX (4/15/2025, 7:00:00 PM)
0.24
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners27.93%
Ins Owner ChangeN/A
Market Cap26.89M
Analysts84.44
Price Target0.56 (133.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-13.09%
Min Revenue beat(2)-16.88%
Max Revenue beat(2)-9.3%
Revenue beat(4)1
Avg Revenue beat(4)-9.74%
Min Revenue beat(4)-16.88%
Max Revenue beat(4)2.27%
Revenue beat(8)1
Avg Revenue beat(8)-7.99%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.33%
PT rev (3m)-8.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)66.67%
EPS NY rev (3m)66.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.66 | ||
| P/S | 0.12 | ||
| P/FCF | 0.89 | ||
| P/OCF | 0.61 | ||
| P/B | 0.45 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 3.63 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.05
Fwd EY21.46%
FCF(TTM)0.27
FCFY112.26%
OCF(TTM)0.4
OCFY164.92%
SpS2.05
BVpS0.54
TBVpS0.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.82% | ||
| ROE | -10.22% | ||
| ROCE | 8% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.84% | ||
| ROICexgc | 7.35% | ||
| OM | 5.43% | ||
| PM (TTM) | N/A | ||
| GM | 26.22% | ||
| FCFM | 13.13% |
ROA(3y)-0.34%
ROA(5y)-0.78%
ROE(3y)-1.13%
ROE(5y)-2.38%
ROIC(3y)5.26%
ROIC(5y)4.33%
ROICexc(3y)5.43%
ROICexc(5y)4.43%
ROICexgc(3y)6.93%
ROICexgc(5y)5.67%
ROCE(3y)7.5%
ROCE(5y)6.13%
ROICexcg growth 3Y52.59%
ROICexcg growth 5YN/A
ROICexc growth 3Y52.93%
ROICexc growth 5YN/A
OM growth 3Y43.75%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.83%
GM growth 5Y2.32%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 61.15% | ||
| Cap/Sales | 6.16% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 124.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.13 |
F-Score7
WACC6.56%
ROIC/WACC0.83
Cap/Depr(3y)63.54%
Cap/Depr(5y)52.31%
Cap/Sales(3y)6.13%
Cap/Sales(5y)5.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-350%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-500%
EPS Next Y203%
EPS Next 2Y91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.99%
Revenue growth 3Y12.99%
Revenue growth 5Y6.47%
Sales Q2Q%-14.45%
Revenue Next Year4.94%
Revenue Next 2Y-1.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-11.73%
EBIT growth 3Y62.42%
EBIT growth 5YN/A
EBIT Next Year169.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.46%
FCF growth 3Y97.81%
FCF growth 5Y17.07%
OCF growth 1Y-1.35%
OCF growth 3Y50.71%
OCF growth 5Y14.87%